High-Frequency Interaction in Oligopoly Markets

Project summary

How do long-run market outcomes depend on firms’ access to information and their ability to react to new information? What is the role of non-standard behaviors stemming from goals other than profit maximization or simple rules of thumbs? And how do long-run outcomes change when firms’ objectives evolve in response to market pressure? Utilizing recent advances in experimental software design – boosting the number of periods that can be conducted within the usual time frame of an experimental session by two orders of magnitude – project B03 will study long-run dynamics in oligopoly markets with high-frequency interaction to tackle this set of questions.